Legal Question in Civil Litigation in New York
Deflamation sue from a customer who owes money
We are new york corp. sold merchandise to a customer 500000.00 recieved 150,000.00 bal 350,000 due. Now we fould out that the customer is alleged in wrongfull activities and using false purchase orders from a big company , money laundering. Finding this we stopped giving him merchandise and asked him to pay us or return us . He tried to use our name as supplier ( locally & overseas)and asked people overseas to send him merchandise. finding out this we make a plain letter describing that he( without using his identity or name) is doing all illegal activities and faxed it to overseas supplier , he got the letter with our company heading on fax nothing else says our company . Now he sued our corp. and company official and one more person that has nothing to do with company, for 5 million in Supreme court, NY . Now we have to sue him as well as to defend oursevles. We are looikng to see what we could do and how can we defend our selves at low expense and collect our money as the guy is doing ovr 20 million $ dealings. He has assets also.
We need help to deal with this at the best possible and collect our money.
3 Answers from Attorneys
Re: Deflamation sue from a customer who owes money
Very Importantly...
Turn the lawsuit over to your insurance company and/or broker...there by be coverage so that they will defend and indemnify you....the longer that you wait, the more the possibility that you jeoparidize your coverage if it exists.
Good Luck
RRG
Re: Deflamation sue from a customer who owes money
It is possible that you do not have coverage for defamation or to collect on monies due and owing.
A complete defense to a defamation suit is that the statement made is true. You need to confirm by all means possible to show that what you sent via facsimile is true. Also, the amount for which this company or person sued you does not mean that he or it will collect that amount. So, in other words, he must prove that he suffered the $5 million in damages (although, there is a concept known as "defamation per se" which affords someone to collect only "nominal" damages where the defamatory statement when to one's business dealings).
You are correct in your need to file a counterclaim against the him for the amounts he owes you.
You should also know that a corporation, such as yours, cannot appear in court without an attorney. While the facts of this case seem to cry out for legal representation, even if you did not want to have any attorney, the law mandates that you have one for the corporate defendant.
-- Kenneth J. Ashman; Ashman Law Offices, LLC; 156 W. 56th Street, Suite 1902, New York, New York 10019; [email protected]; www.lawyers.com/alo
Re: Deflamation sue from a customer who owes money
First, based upon your description of the facts, there may be a question whether the company's insurance policy would cover a claim for defamation. However, you should certainly contact your insurance company and report the claim. Failure to do so could consitute a waiver if coverage does, in fact, exist.
Secondly, you must assert the company's claim for monies owed as a counterclaim in your answer to the complaint.
Finally, consideration should also be given to whether a joint defense agreement with the unrelated defendant is in the company's interest.
Based upon your description of the facts, it seems urgent that the company retain counsel without further delay. I would be happy to discuss this with you further and answer any additional questions you might have.
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